Students who spent tens of thousands of pounds on Tayside Aviation course fees expect to see “pennies” following the firm’s collapse.
Tayside Aviation called in administrators on April 20, leaving many students and their parents thousands of pounds out of pocket.
A total of 22 staff lost their jobs as the firm, owned by millionaire Tony Banks, ceased trading.
Administrators attempted to find a buyer, but no bids were forthcoming despite “significant” interest.
They are now continuing with the sale of assets in a bid to recoup funds.
‘Disappointment and anger’
A creditors’ meeting was held as part of the administration process.
This was attended by several parents of students. Classed as unsecured creditors, they learned they would only see a tiny proportion of their substantial investments returned.
Brian Hesler says he spent £48,000 sending daughter Fiona to the historic Dundee flight school and believes he’s lost most of the money he paid.
He said the demise of Tayside Aviation has “robbed” some students of their dream of becoming a pilot
Mr Hesler said: “We’ll get very little back from the £48,000 we’ve put in. We’ll receive pennies for what we’ve invested.
“Some of these kids won’t get another chance at this because some of their parents have remortgaged their homes.
“It’s just not financially possible.
“I can see why Tony Banks wants to protect his money but that shouldn’t be at the expense of the students.
“It’s not like we’ve all got money on trees to spend. It’s had a substantial impact.
“There’s a lot of disappointment and anger. We feel like we’ve been stitched up and cleaned out.”
ARB Aviation is taking legal action against the former owners of Tayside Aviation.
Tayside Aviation students in ‘difficult position’
Hr Hesler said some students now face the challenge of trying to come up with the funds to resume their training.
He added: “All the students are trying to find somewhere to continue their training.
“They are in a difficult position because either the costs are higher or there’s no places available.
“They’ve lost the cheapest route through. A lot of money has been lost and they’ve got to do it again.”
Geoff Jacobs and Blair Nimmo of Interpath Advisory are the administrators.
A spokesperson said: “We held a physical meeting of creditors which was well attended and at which we presented our statutory update in accordance with the insolvency process.
“In the meantime, we continue to progress with the sale of assets.”
The administrators said they will continue to provide assistance to the creditors.
Committee created
Meanwhile, a creditors’ committee has also been formed to deal with the administration of Tayside Aviation.
The Courier understands the five-person committee includes two representatives of ARB Aviation, two representatives of the students, and an independent member.
The committee’s role is to be available for consultation by the administrators. It also is responsible for approving various statutory matters as the administration progresses.
A spokesperson for ARB Aviation said: “We are pleased to be working with the administrators on the committee to secure the best possible outcome for creditors.
“We hope that the whole matter can be settled quickly for all concerned.”
